Volklec, the only independent battery manufacturing business in the UK, recently made a significant announcement regarding its journey towards industrialization and scale-up. The company has entered into a license agreement with Far East Battery (FEB), an Asian battery supplier, for technology and knowledge transfer. This partnership will enable Volklec to start manufacturing advanced lithium-ion batteries in the UK later this year.
The focus will be on producing two specifications of lithium-ion 21700 cylindrical battery cells. The first to go into production will be a proven energy cell using NMC chemistry, known for its compact size and high energy density. Phil Popham, Executive Director of Volklec, shed light on the significance of this agreement and why the company stands as the sole UK-based battery manufacturer currently.
According to Popham, the absence of other independent UK battery manufacturers can be attributed to the challenges inherent in developing proprietary technology, cell structures, and supply chains. This typically requires substantial time and financial investment, leading many investors to lose confidence due to prolonged timeframes to market. However, recognizing the demand for an independent manufacturer in the UK, Volklec adopted a partnership model with FEB to mitigate risks and accelerate entry into the market.
The partnership with FEB entails leveraging the existing manufacturing capabilities of the UK battery industrialization center in Coventry. Initially, Volklec will invest in enhancing the production line for an energy cell, followed by the establishment of a one-gigawatt line for a new power cell within the same facility. By licensing proven technology from FEB, Volklec gains access to high-quality components at competitive prices, ensuring a stable supply chain and cost efficiency.
Key benefits of collaborating with FEB include knowledge transfer from experienced engineers, enabling Volklec to achieve high production yields quickly. Additionally, the partnership grants access to FEB’s supply base, ensuring procurement of components at favorable rates. The timeline for production involves the commencement of energy cell manufacturing this year, followed by power cell production next year. Volklec also retains the rights to further develop its own technology based on the licensed cells.
In summary, Volklec’s strategic approach emphasizes quick market entry, revenue generation, and flexibility for future expansion. By leveraging FEB’s expertise and established technology, the company aims to establish itself as a prominent player in the battery manufacturing industry. With a focus on innovation and customer needs, Volklec is poised for growth and expansion beyond the UK market in the coming years.
